Bankruptcy, while a solution if you are experiencing dire financial troubles, can have lasting consequences that take time to recover from. However, with vigilance and a resolve to not repeat past mistakes, you can overcome the effects of bankruptcy and improve the quality of your financial structure. At Ferriswinder PLLC Attorneys at Law, we are committed to educating the people of Virginia about how bankruptcy works.
While you may have saved for your child's higher education and did everything by the books financially, job loss, divorce, medical emergencies and other unexpected events may have forced you to file for bankruptcy. While bankruptcy gives you a chance to start over financially, you may wonder how the filing will affect your child's future. Will it hurt his or her chance of obtaining federal financial aid or student loans to go to college in Virginia?
When people have reached the decision to file for bankruptcy in Virginia, they could have spent considerable time leading up to their decision, doing everything in their power to get out of the financial situation they are in. Others may have simply settled on bankruptcy as a convenient method to smoothing over the issues they have encountered with their cash flow. Whatever their reasons, one of the biggest mistakes that people can make is to see bankruptcy is a solution.
Though today's economy is better than what it was a decade ago, it is still tumultuous. Because of this, Virginia homeowners should be aware of their rights should they need to file bankruptcy. Most states have homestead exemption laws, which prevent lenders from kicking homeowners out of their homes should they undergo drastic changes in financial circumstances. While Virginia's homestead exemption laws are not the worst in the nation, they are amongst some of the most unforgiving.
A company's ability to manage its debt and maintain a steady stream of cash flow is imperative to its ability to succeed, attain growth and remain competitive. Without a solid financial foundation, other aspects of operating an organization just cannot function and can quickly send everything spiraling out of control.
Recently, it is not a surprise to hear in the Virginia news that a large retailer is filing for bankruptcy. It seems to be a very common occurrence. Many blame online retailers, such as Amazon, or mass retailers, such as Walmart. While Amazon and Walmart may play a role, the real reason why so many are moving to file bankruptcy is to get ahead of their financial troubles.
If you have reached the point of considering personal bankruptcy, your first question is one that most in the same financial position in Richmond likely share: "What do I stand to lose?" Bankruptcy is meant to be a tool to help put you back on the path to financial stability. At the same time, achieving that becomes difficult if you have to forfeit up much of your own personal property in the process. For this reason, the law allows you to keep your interest in certain property exempt from bankruptcy proceedings.
When you decide to declare bankruptcy in Virginia, you must then decide which type of bankruptcy is right for you: Chapter 7 or Chapter 13. Chapter 7 bankruptcy, or "liquidation" bankruptcy, as it is commonly referred to as, involves the liquidation of all a debtor's assets to repay creditors. Chapter 13, on the other hand, is a "reorganization" bankruptcy. When you file for this type of bankruptcy, your debts get reorganized in such a way that allows you to repay your debts via low monthly payments over a longer period of time.
Filing for bankruptcy can be a daunting task for anyone, but especially for large companies that are grasping at straws to overcome financial blunders. For struggling companies in Virginia, filing for bankruptcy may bring with it the promising hope that somehow, they may be able to turn their problems around and strengthen their financial foundation to rediscover success.
If you are like most Virginia residents in their 60s and older, you never expected to be at this stage of your life still struggling to make ends meet financially. Yet, if this is your everyday reality, you are far from alone. New data released from the Consumer Bankruptcy Project shows that more people 65 and older are filing bankruptcy today than in the past.